Management Buyouts
GSM is a leading provider of technologically advanced, branded products for hunters, sport shooters, and other outdoor enthusiasts. GSM’s industry-leading brands include Walker’s (hearing protection and enhancement devices); Muddy, Hawk, and Big Game (tree stands and box blinds); Stealth Cam (technologically advanced game scouting cameras); Birchwood Casey, SME, TekMat, GPS Bags, and CrossFire (shooting targets, holsters, range bags, and related accessories); HME, Skull Hooker, and Viking Solutions (hunting tools, mounts, and knives); Hunters Specialties and Western Rivers (scent attractants, scent control products, and game calls); Cyclops (specialty outdoor lighting); Boss Buck and American Hunter (game feeders); and NAP (broadheads and other archery accessories). GSM sells through a diverse mix of channels, including online retailers, sporting goods stores, mass merchants, outdoorsman retailers, farm and fleet stores, and distributors across the United States and Canada.
Background
GSM was previously owned by a private equity firm that acquired the business from its founder. After a two-year ownership that included two add-on acquisitions, the prior owner decided to sell GSM. GSM’s management had built a deep M&A pipeline and was seeking a new partner to help accelerate the pace of acquisitions. Sentinel was selected as the buyer because of our experience investing in the consumer sector; our proven record of growing businesses through acquisitions; and the strong relationship we formed with GSM’s management team during the sale process.
Opportunity
- To acquire a leading branded enthusiast consumer products business in an attractive, stable category
- To establish GSM as the consolidator of choice in a highly fragmented industry
- To partner with GSM’s talented and experienced management team, who coinvested meaningfully alongside Sentinel and continued to lead the business
Accomplishments
Achieved Growth Goals: In under three years, GSM made 12 add-ons, including two sizable platforms with leading brands in key adjacent categories and 10 smaller tuck-ins of single brands or products. GSM’s management team smoothly integrated all acquisitions, generated strong organic growth through cross-selling and product innovation, and realized their goal of becoming the leading player in the industry.
Positioned the Business for Further Growth: Sentinel worked with management to solidify GSM’s strong foundation by moving to a new, state-of-the-art distribution center, investing in high-tech systems, and hiring additional management. GSM also acquired its primary supplier and R&D partner, which was transformative.
Built a Strong Partnership with Management: Sentinel established a strong and productive relationship with GSM’s management and employees—more than 40 of whom coinvested with us. Sentinel also worked closely with the CEO to establish an incentive program to give management significant financial upside.
Outcome
By November 2020, after Sentinel’s 2½-year ownership, GSM had more than tripled its revenues and quadrupled its EBITDA while making investments to set it up for continued growth. Having substantially exceeded our investment objectives, GSM was sold to another private equity firm in a highly successful management buyout transaction.
Case studies have been selected for illustrative purposes for management teams of midmarket companies considering a partnership with Sentinel and should not be considered an offer or solicitation of services or an actual or implied endorsement of Sentinel or any security, investment, or portfolio company. The portfolio companies highlighted are not representative of all current and prior investments of Sentinel. A list and description of investments since Sentinel’s inception is available on this website.